Mortgage Bankers’ Commercial/Multifamily Originations Totaled $491 Billion in 2016

WASHINGTON, D.C. (April 7, 2017) – (RealEstateRama) — Commercial and multifamily mortgage bankers closed $490.6 billion of loans in 2016, according to the Mortgage Bankers Association’s (MBA) 2016 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation released today.

“Last year was a strong year for commercial real estate finance,” said Jamie Woodwell, MBA’s Vice President for Commercial Real Estate Research. “For originations, 2016 was the third highest year on record, after 2007 and 2015. Borrowing and lending backed by multifamily properties made up the largest share of the market, and Fannie Mae and Freddie Mac drove much of that activity.”

“The post-election rise in interest rates has taken a bit of wind out of the sails of the transactions’ market in the first quarter of 2017.  The degree to which it and other potential market changes- such as tax reform proposals, general economic growth, foreign investment, and consumer confidence- will affect borrowing and lending in 2017 is still to be seen,” Woodwell continued.

Commercial banks were the leading investor group for whom loans were originated in 2016, responsible for $157.4 billion of the total.  Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) saw the second highest volume, $105.8 billion, and were followed by life insurance companies and pension funds, commercial mortgage-backed securities (CMBS) issuers and REITS, mortgage REITS and investment funds.

In terms of property types, multifamily properties saw the highest origination volume, $214.1 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care.  First liens accounted for 97 percent of the total dollar volume closed.

The reported dollar volume of commercial and multifamily mortgages closed in 2016 was three percent lower than the volume reported in 2015.  Among repeat participants in the survey, the dollar volume of closed loans declined by one percent.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

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Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

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